Skift Take
Alaska’s success for Carnival, the world’s largest cruise company, points to the ongoing popularity of the cruise industry.
Carnival Corp. said Monday that Alaska has emerged as one of the cruise line operator’s top destinations this year, especially for first-time cruisegoers.
“Alaska, in particular, for this past year was off the charts,” said Josh Weinstein, president, CEO, and chief climate officer, during a third-quarter earnings call.
A large share of the demand growth for Alaska has been from customers who are first-time cruisegoers.
“[Alaska] was absolutely phenomenal, and that tends to skew higher to new-to-cruise because if you’re going to go to Alaska, which everybody should go do, the only way you can go see it is by a cruise ship to really appreciate it,” said Weinstein.
Weinstein’s comments on Alaska come as locals in Juneau vote through Tuesday on a ballot initiative that would ban large cruise ships of over 250 passengers on Saturdays and the Fourth of July.
Carnival has donated to Protect Juneau’s Future, the coalition opposing the ballot measure.
Bookings Continue at Higher Prices
Carnival has been charging higher prices for its cruises, but consumers haven’t been deterred. The overall new-to-cruise segment was up 17% year over year in the quarter.
“Every brand in our portfolio is well booked at higher pricing in 2025,” said Weinstein. “We’re about two-thirds booked when you look at the next 12 months. We’re in a pretty enviable place.”
When asked by an analyst if there are any consumer behaviors to watch moving forward, Weinstein said, “I’m happy that I just have to say, ‘no.’ We’re seeing that demand for all the brands pretty much across the portfolio.”
In the third quarter, revenue hit an all-time high of almost $8 billion, up nearly $1 billion more than last year’s record level. Net income was $1.7 billion, up over 60% from last year.
Chinese Market Is Not of Interest
Executives aren’t interested in pursuing the Chinese cruise market even though it’s now open to international cruising.
“It’s not something that we’re pursuing at this time,” said Weinstein. Before the pandemic, Carnival only dedicated a “few percentage points” of its capacity to China.
The Asia and Pacific region has been making a steady recovery. “With respect to the region overall, when it comes to Japan, Taiwan, and other regions, that’s going well. People like cruising with us before, and they continue to enjoy it now.”
Avoiding the Middle East
Carnival also has no plans to return to the Middle East due to the ongoing regional conflicts. “We weren’t banking on it getting better and hope to God it doesn’t get worse,” said Weinstein.
The removal of the Middle East from Carnival itineraries has not had a significant impact on Carnival’s bottom line. “Our business isn’t really contingent on it. It’s not a major source market for us, and we’re not going to the region,” said Weinstein.
Hurricane Helene’s Impact
The hurricane has had minimal damage to Carnival’s operations. “It’s a few million dollars for us. It’s not anything of significance,” said Weinstein.
New Cruise Stop for 19 Ships in 2026
Carnival executives have high hopes for their new Bahamian cruise port, Celebration Key, which is due to launch in July 2025.
“We anticipate that Celebration Key will be a smash hit with our guests and provide an excellent return on our investment,” said Weinstein.
In 2026, Celebration Key will serve as a ‘premium call’ for 19 Carnival Cruise Line Ships.